by chrisp238 » Fri Jun 12, 2015 01:51 pm
Mrs Smith is the Owner and Beneficiary of life insurance policy on Mr. Smith. Mrs Smith has 2 children who are contingent beneficiaries.
If Mrs Smith dies before Mr. Smith. Are the contingent beneficiaries the new owners, and are they able to make changes to the policy etc?
If Mrs Smith dies before Mr. Smith. Are the contingent beneficiaries the new owners, and are they able to make changes to the policy etc?
Posted: Mon Jun 29, 2015 02:02 pm Post Subject:
If Mrs Smith dies before Mr. Smith. Are the contingent beneficiaries the new owners, and are they able to make changes to the policy etc?
This is almost never going to happen.Either the estate of Mrs. Smith is going to become the owner, or the insured Mr. Smith will become the owner. Beneficiaries, unless irrevocable, are not in a position to become policyowners in most cases. And even an irrevocable beneficiary will probably not become the policyowner -- they just cannot be removed as the beneficiary.
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